Aurora Cannabis to close Edmonton facility, says 8% of its workforce to be impacted
Aurora Cannabis Inc. said eight per cent of its global workforce will be impacted by the forthcoming closure of one of its Alberta facilities.
The cannabis company announced Wednesday that it is closing its Aurora Polaris property in Edmonton as part of a plan to streamline its operations.
“This decision was not taken lightly. After painstaking review and thorough consideration, we are taking the necessary steps to strengthen our core operations to meet current and future demand,” the company said in an email to The Canadian Press.
“We aspire to be a leaner, more agile organization that keeps pace with our competition and is on a path to profitability. We believe these changes are imperative for our future success.”
An Alberta government website detailing major projects in the region shows the Aurora Polaris facility was about 2,787 square meters with one-third of the space dedicated to warehousing and distribution of cannabis products and the remainder hosting product manufacturing.
The website says the property had an estimated cost of $50 million and was adjacent to an Aurora Sky facility by the Edmonton International Airport.
Aurora Polaris' medical distribution operations will move to the Aurora Sky facility, while manufacturing will be relocated to Aurora River in Bradford, Ont.
Aurora, which is headquartered in Edmonton, will keep its corporate office in Alberta.
The changes come after the company moved the release of its fourth-quarter earnings from Sept. 21 to Sept. 27.
Analysts are not optimistic about the figures Aurora will report next week.
Bill Kirk, an analyst and executive director with MKM Partners, told investors in a Sept. 17 note that he feels Aurora has “limited prospects” to improve its position in the recreational cannabis market and is unlikely to beat profitability expectations.
He pointed out that in the 17 quarters Aurora has reported as a public company, it has missed consensus EBITDA expectations 17 times and he feels the firm will barely generate $50 million in revenue.
Cantor Fitzgerald analyst Pablo Zuanic felt similarly and said in a Sept. 16 note that his firm had cut its Aurora estimates and will not assume positive EBITDA for the company in its three-year projections.
Such concerns have long dogged Aurora, which spent much of the pandemic busy with a restructuring, layoffs and closures of several other facilities.
The Aurora Polaris closure was an extension of those efforts, the company indicated in an email.
“While we've made substantial progress transforming Aurora, the company continues to make tough yet responsible changes to further optimize our business,” it said.
Aurora has not been alone in making cuts.
Rivals Canopy Growth Corp. and Tilray Inc. have both worked to streamline their operations throughout the pandemic as they get a better sense of Canadian demand for cannabis.
Tilray, for example, said earlier this week that it would close a Nanaimo, B.C. office and facility.
This report by The Canadian Press was first published Sept. 22, 2021.
CTVNews.ca Top Stories
NEW From yearning for a change to cost of living, why some Canadians have left or may leave the country
For some immigrants, their dreams of permanently settling in Canada have taken an unexpected twist.
NEW Capital gains tax change 'shortsighted' and 'sows division' business groups tell Freeland
Forging ahead with increasing Canada's capital gains inclusion rate 'sows division,' and is a 'shortsighted' way to improve the deficit, business groups are warning Finance Minister Chrystia Freeland.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
Minister said 'hundreds' of Canadians might use Gaza visa. More than 7,500 applied.
An immigration lawyer in Toronto says new figures from the federal government show just how 'grudging' Ottawa's efforts have been to rescue Canadians' family members from the war in the Gaza Strip.
Police handcuff man trying to enter Drake's Toronto mansion
Toronto police say a man was taken into custody outside Drake's Bridle Path mansion Wednesday afternoon after he tried to gain access to the residence.
Canucks claw out 5-4 comeback win over Oilers in Game 1
Dakota Joshua had a goal and two assists and the Vancouver Canucks scored three third-period goals to claw out a 5-4 comeback victory over the Edmonton Oilers in Game 1 of their second-round playoff series Wednesday.
U.S. presidential candidate RFK Jr. had a brain worm, has recovered, campaign says
Independent U.S. presidential candidate Robert F. Kennedy Jr. had a parasite in his brain more than a decade ago, but has fully recovered, his campaign said, after the New York Times reported about the ailment.
What is whooping cough and should Canadians be concerned as Europe declares outbreak?
There is currently a whooping cough epidemic in Europe, with 10 times as many cases compared to the previous two years. While an outbreak has not been declared nationwide in Canada, whooping cough is regularly detected in the country.
Florida deputies who fatally shot U.S. airman burst into wrong apartment, attorney says
Deputies responding to a disturbance call at a Florida apartment complex burst into the wrong unit and fatally shot a Black U.S. Air Force airman who was home alone when they saw he was armed with a gun, an attorney for the man's family said Wednesday.